Exam 2 practice questions

Chapter 7

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Chapter 6

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Chapter 4

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Chapter 5

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In the typical S-curve pattern of innovation, increased effort (i.e., money, research and development) brings only small improvements in technological performance ____,

at both the beginning and end of the cycle

In the typical S-curve pattern of innovation, small amounts of effort will result in significant increases in performance ____.

at the midpoint of the cycle

A firm using a ____ strategy to prevent or reduce political risks will lobby foreign governments or international trade agencies to change laws, regulations, or trade barriers that hurt their business in that country.

control

A(n) ____ is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country.

cooperative contract

Starbucks is a chain that is rapidly expanding its global operation. As it expanded into South America, its research showed that Chileans on average drink only 150 cups of coffee annually, and people in Argentina only drink about half that amount. An average citizen of the United States drinks 345 cups annually. These differences in annual coffee consumption most likely reflect ____.

cultural differences

A technology ____ begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology.

cycle

Hohner is a company that manufactures and markets harmonicas, a product with a steady demand rate. It is so successful at what it does that the company controls 85 percent of the world's harmonica industry. In terms of the adaptive strategies, Hohner would most likely be categorized as a(n) ____.

defender

A manufacturer of suntan lotion could set a(n) ____ goal to increase revenues by 8 percent over the next five years and a(n) ____ goal to increase sales next June in the Miami Beach area by 3 percent.

distal; proximal

While ____ are tangible, ____ are not.

distinctive competencies; core capabilities

One of the benefits of planning is how it ____.

encourages people to engage in behaviors directly related to goal accomplishment

There are eight general steps for organizational development intervention. The first step is ____.

entry

As a company that manufactures janitorial cleaning supplies tries to develop more environmentally -friendly products that can clean as well as its current ones, the company's manager must select among alternatives derived from oranges, parsley, lemon, or a combination of these ingredients. This is the ____ step in the rational decision-making model.

evaluate each alternative

Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability?

existing complementary products

____ occurs when a company sells domestically produced products to customers in foreign countries.

exporting

Protectionism is the use of trade barriers to protect local companies and their workers from ____.

foreign competition

Which of the following must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

imperfectly imitable resources

Patterns of innovation over time that can create sustainable competitive advantage are called ____.

innovation streams

Companies in the chemical industry are struggling to attract the most talented college graduates. One of the biggest challenges facing these companies is attracting new talent to organizations with an "old economy" image. A situational analysis would term this challenge a(n) ____.

internal weakness

____ can help organizations to maintain flexibility as they plan.

options based planning

____ planning keeps options open by making small, simultaneous investments in many alternative plans.

options-based

Starbucks is expanding its global operations into South America in spite of the real probability of civil wars and terrorist activities in many of the continent's nations. As Starbucks expands into South America, it must deal with ____.

political uncertainty

What are the two types of political risk that affect companies conducting global business?

political uncertainty and policy uncertainty

Cost leadership, differentiation, and focus are the three types of ____ strategies discussed in the text.

positioning

An organization which is a ____ in terms of its adaptive strategy would NOT follow a consistent strategy.

reactor

Ernst & Young, an international accounting and management consulting company, entered Hungary first by establishing a joint venture with a local firm. Ernst & Young later acquired the company with which it had the alliance. As a result Ernst & Young then had a(n) ____ in Hungary.

wholly owned affiliate

The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of ____.

a government import standard

A situational analysis for a manufacturer of pet food might reveal which of the following facts____.

a. a growing dog and cat population in the United States b. scientific research that indicates dogs need less calcium in their diet c. a less expensive, more nutritious imported brand of pet food d. a growing demand for gourmet pet food e. A SWOT analysis might reveal all of the listed issues.

Organizational development ____.

a. takes a long-range approach to change b. creates change by educating workers and managers to change ideas, beliefs, and behaviors so that problems can be solved in new ways c. assumes that top management support is necessary for change d. emphasizes employee participation in all stages of the change e. is accurately described by all of these

Deutsche Bank became the world's largest bank through mergers with Bankers Trust, a transatlantic banking operation. Since both banking companies had similar core capabilities, this would be classified as an example of ____.

related diversification

One method of weighing decision criteria uses ____, which is a process where each decision is compared directly to every other criterion.

relative comparisons

From a competitive standpoint, ____ means that the strategic actions your company takes can probably be matched by your direct competitors.

resource similarity

Nearly all technology cycles follow the typical ____ pattern of innovation.

s-curve

Which of the following is NOT one of the rules for effective brainstorming?

select an open minded group leader

Which of the following is one of the sources of resistance to change?

self-interest

The purpose of multifunctional teams is to ____.

speed innovation through early identification of new ideas or problems that would typically not have been generated until much later

A department store is experiencing greater than usual losses due to theft and management wants it stopped. Middle management decided to hire a security company to study the problem and develop the best plan for dealing with it. Middle management have implemented a(n) ____ plan.

tactical

____ plans are plans that specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.

tactical

When done correctly, management by objectives (MBO) is an extremely effective method for ____.

tactical planning

Companies need to excel at managing ____ in order to successfully manage innovation streams.

the sources of innovation